🎯 Options Strategy: Bear Put Spread

$Snail Inc.(SNAL)$

- Underlying: SNAL

- View: Bearish for a short-term pullback from overbought extremes. Aims to profit from a decline while capping risk.

- Strategy Type: Debit Spread / Defined Risk Directional

- Option Contract Portfolio:

- BUY 1x June 20, 2026 $1.00 Put

- SELL 1x June 20, 2026 $0.75 Put

- Max Gain & Loss: Max Gain = $0.25 - Net Debit. Max Loss = Net Debit Paid.

- Initial Cost/Credit: Debit of ~$0.10 - $0.15 (Estimated, given extreme IV would inflate both legs).

- Greek Exposure (Simulated):

- Delta: -0.40 to -0.50 (Moderate negative, bearish directional bias).

- Theta: Slightly Negative (Debit spread initially loses small time value).

- Vega: Slightly Positive (Long put has higher Vega than short put, but net exposure is low due to spread structure).

- Gamma: Moderate.

- Rho: Low.

- Rationale: This strategy directly targets a retracement from the overbought RSI of 85.99. It offers a favorable risk/reward profile by defining max loss (the debit paid). While it is a net debit, the spread structure significantly reduces the negative impact of high Vega compared to a naked long put. Profit is maximized if SNAL closes at or below $0.75 at expiration. It balances a clear bearish view with capital efficiency and controlled risk.

- Time Frame: Short-Term (to June expiry, ~35 days).

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